Retrospective tax was indefensible; burying it shows pragmatism

Institutional arrogance in taxation has cost India dearly in terms of its image as a business-friendly, rule-driven country

I distinctly remember the union budget in which Pranab Mukherjee, as Finance Minister, sneakily introduced the retrospective tax. I was at a post- budget panel and as usual for all budgets the entire panel, including me, were busy giving 11 marks out of 10. That was until somebody whispered into our ears that in the fine print, there was a clause bringing in a retrospective tax amendment to ensnare Vodafone.

Obviously, the budget marks went down sharply to 10/10: a full mark was deducted by the panel for this horrendous decision.

After that, a whole saga ensued in which the